Jordan Journal of Economic Sciences

Market Index Return and Volatility Spillovers Evidence from Arabian Stock Markets

Khaled AL-Naif — 2021-06-30

This study aims to examine the index return variation caused by shocks transmissions among six Arabian stock markets namely (Amman stock exchange, Casablanca stock exchange, Dubai financial market, Egypt Capital Market, Saudi Stock Market, and Palestine Securities Exchanges) throughout the 2^nd of January 2017 and the 2^nd of January 2020. The results showed weak returns and volatility spillovers within the Arabian stock markets; in particular, the overall spillover index of return indicates that only 3.38% of the variations are caused by the cross-market shocks, whereas, 96.62% of the variations are caused by the market's shocks.In addition, the overall value of the volatility spillover index implies that only 2.4% of the variations are caused by the cross-market shocks, whereas, 97.6% of the variations are caused by market own shocks.The study recommended conducting further studies on all Arabian markets, especially in light of the current conditions of the Corona crisis.

The Impact of Educational Attainment on Employment Opportunities and Wages in Jordan

Ahmad Hailat — 2021-06-30

This paper investigates the impact of individual's educational attainment on employment opportunities and wages in Jordan using Jordan labor market Panel Survey 2010 and 2016 micro-data. Probit Models and Standard Linear regression Models are employed, and the main findings are follows. Educational attainment positively impacts employment and wages; as the educational level of an individual increases, so does his/her employment probability and the monthly wage. Effects of educational attainment on employment and wages are deteriorated in 2016 relative to 2010, however the effect remains positive and statistically significant. Employment and wages are positively associated with work experience and household wealth, and vary by gender. Finally, while wages vary across sectors, there is no significant evidence on wage disparities by nationality.

The Role of Islamic Contracts Credits in Private Investment in Iran: An Application of Threshold Regression Approach

Mohammad Abdi Seyyedkolaee — 2021-06-30

Investment is an important component of macroeconomics and an essential requirement in the economic development of any country. Due to the centrality of the banks in the financing system of Iran, the facilities granted by banks are one of the most important factors influencing the decisions of investors in the private sector. After the adoption of the law on interest-free banking, banking facilities under various contracts were received in two forms of partnership and exchange. The present research investigates the effects of contracts of partnership and exchange on private sector investment during 2001:1 - 2017:4 using the Threshold Regression (TR) approach. The results show that the impact of contracts of partnership and exchange on private sector investment is not constant and is highly dependent on the regime. Thus, if the investment is less than $313633 (first regime), the contracts of partnership do not have a significant effect and the contracts of exchange negatively affect the investment. In the range of $313633 to $347953 (the second regime), none of the variables has a significant effect. When investment varies between $347953 and $430885 (the third regime), only the contracts of partnership have a significant effect. In this case, the above-mentioned variable positively affects the private sector investment. Again, in the range of $430885 to $475389, none of the contracts can have a significant effect. As long as the investment is more than $475389, the contracts of partnership have a significant negative effect.

Socioeconomic Demand Determinants for Domestic workers: The Case of Jordan

Ahmad Oran — 2021-06-30

The demand for domestic workers in Jordan has risen rapidly since the beginning of 1980's. This study aims to identify the determinants that may affect the demand for domestic workers in Jordan for the period 2018-2019. The study employed the binary logistic regression model using qulaitative data.the model include several explanatory variables that are believed to influence the demand for domestic variables. The estimated results showed that the number of family members has a significant and positive impact on the presence of domestic worker with odds ratio 22 times, as it comes in the first place. Then second place comes to family income in terms of importance in the positive impact on the on the presence of domestic workers with odds ratio 18 times, while the transfers of workers in outside comes in the third place in importance and with a positive effect and odds ratio 6 times.The presence of children under the age of ten in the family and disabled individuals in the family appear to have a negative influenceon the demand for domestic workers, and which is ranked fifth in the negative impact on the demand for domestic workers.

Factors Driving World Market Integration: The Case of Jordan's Industries

Said Alkhatib — 2021-06-30

The purpose of this study is to examine the impacts of factors driving world market integration using panel data on the micro-level of 20 industries (2digits-ISIC) over the period 2009-2017. The present study suggested relatively large system of simultaneous equations model to avoid the simultaneous and specification bias. The model consists of three endogenous variables (industrial production, manufactured exports, and manufactured value-added), and four exogenous variables (workers' compensation, intermediate goods, intermediate services, and spending on improvement and development). Based on the export-to-output ratio, industries have been divided into two groups: the high exporting group (export-to-output ratio exceeds 25%), and the low exporting group (export-to-output ratio varies between 4.5% and 25%). That is to reflect the differences between these two groups which may result due to differences in strategy, competitiveness, innovation, and access to world markets. The simultaneous model was estimated for all industries, and for each of the previous groups. The intermediate goods show very impressive success in most of the equations estimated, confirming the role of imported inputs in driving world market integration in Jordan. The workers' compensation turn out to have significantly positive effect on most of the endogenous variables for all industries and for the high exporting group. The intermediate services appear to have no significant effect in all models, except for the high exporting group, while spending on improvement and development appears to have a significantly positive effect for the entire sample and for the low exporting group. Finally, the hypothesis of export-led-growth received no empirical support at any significance level in all models.

Monetary Policy Response to Oil Price Shocks in Algeria: By Using an Bound Testing Approach (ARDL)

Abdelhamid Lakhdimi — 2021-06-30

This paper aimed to study the mechanisms of the impact of oil price changes on indicators of monetary stability and the mechanism of monetary policy in response to oil shocks, starting the historical development of oil prices from 1970 to 2018. The paper also reviewed the monetary policy measures in Algeria, and used the Autoregression Distributed Lags (ARDL) approach to estimate the econometric model.

The study found that the main cause of the oil shocks is due to the geopolitical criseswhere the Bank of Algeria has taken three basic measures in response to the drop in oil prices, namely, the devaluation of the exchange rate, the purchase of sovereign debt, and unconventional financing. As for the econometric study, a cointegrating relationship was found between the variables of the study. The analysis of the impulse function response test showed that two variables were more affected by the oil price shocks: inflation and the monetary mass.